Relief for Taxpayers Affected by Colorado Wildfires

Recently, the IRS announced relief for taxpayers in Colorado affected by wildfires and straight-line winds that began on December 30, 2021. These taxpayers now have until May 16, 2022, to file individual and business tax returns and to make tax payments.

According to IRS release CO-2022-01, due to the disaster declaration issued by the Federal Emergency Management Agency, individuals residing or having a business in Boulder County qualify for the tax relief.

Which Tax Deadlines are Postponed for Colorado Taxpayers?

Various tax deadlines falling on or after December 30, 2021, and before May 16, 2022, are postponed until May 16, 2022. For example, the May 16, 2022, deadline now applies to:

• 2021 individual income tax returns due on April 18, 2022.
• 2021 business tax returns (including those for partnerships, S corporations and C corporations) normally due on March 15 and April 18, 2022.
• Quarterly estimated income tax payments normally due January 18 and April 18, 2022.
• Farmers who forgo making estimated tax payments and typically file their returns and pay any tax due by March 1.
• Quarterly payroll and excise tax returns that were due on January 31 and that will be otherwise due on May 2, 2022.
• 2021 IRA contributions.

The relief also applies to estate and trust income tax returns, returns of tax-exempt organizations, and estate, gift, and generation-skipping transfer tax returns that have either an original or extended due date falling on or after December 30, 2021 and before May 16, 2022. There are a number of other returns, payments and time sensitive actions that can qualify for relief in certain circumstances, so refer to the IRS release for more information.

Which Deadlines Are NOT Postponed?

The postponement of the time to file and pay tax generally does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series, to forms 1042-S, 3921, 3922, or 8027, or to employment and excise tax deposits.

However, penalties on payroll and excise tax deposits due on or after December 30, 2021 and before January 14, 2022 will be abated as long as the tax deposits were made by January 14, 2022.

What to Do Next

The IRS automatically applies the filing and payment relief to taxpayers with an IRS address located within the disaster area. Accordingly, there’s no need to contact the IRS to get the relief. However, taxpayers affected by the wildfires and straight-line winds who reside or have a business outside Boulder County, Colorado can call the IRS disaster hotline (866-532-5227) to request relief.

Any affected taxpayer receiving a late filing or late payment penalty notice from the IRS related to a return (whether original or extended filing) or payment due date that falls within the postponement period (December 30, 2021 to May 16, 2022) should call the phone number on the notice to have the penalty abated.

Stay up-to-date with the latest tax news and views.

SUBSCRIBE TO OUR BLOG